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Former CUs offering receives insufficient subscriptions
WAYCROSS, Ga. (11/29/07)--The proposed holding company for a second-step conversion and public offering of a former Georgia credit union-turned-mutual bank has extended the community portion of its second-step offering because subscriptions received to date are not sufficient for a minimum of the offering range. Atlantic Coast Financial Corp., the proposed holding company, extended the public offering to Dec. 28, as provided for in the company's prospectus in October (Business Wire Nov. 27). The recently formed Maryland corporation is the proposed holding company for Atlantic Coast Bank and a successor company to Atlantic Coast Federal Corp. The bank was organized in 1939 as Atlantic Coast FCU to serve employees of the Atlantic Coast Line Railroad. In November 2000, the credit union converted to a federal mutual savings association charter. In January 2003, Atlantic Coast Federal Corp. was formed as the holding company. Atlantic Coast Federal Corp. completed its initial public stock offering in October 2004 (News Now Oct. 19). Atlantic Coast Financial Corp. will maintain current orders received, with interest accruing on subscribers' funds. It also said it is reviewing market conditions to determine when it can commence a syndicated offering to sell shares to the general public not subscribed for in the subscription and community offerings. Stifel, Nicolaus & Co. Inc. will act as sole book-running manager, and FTN Midwest Securities Corp. will act as co-manager for the syndicated offering, which "would also be conducted on a best-efforts basis," said Atlantic Coast Financial's press release. At special meetings held Tuesday, stockholders of Atlantic Coast Federal Corp. and members of the bank's mutual holding corporation approved the conversion and reorganization plan, pending final approval from the Office of Thrift Supervision (OTS) and the sale of at least 11,475,000 shares. Atlantic Coast Federal Corp. had $915.7 million in assets as of Sept. 30. In October, the bank was offering for sale the 63.8% ownership owned by its holding company--nearly 11.5 million to more than 15.5 million shares at $10 per share. The company can increase the amount by 15% to more than 17.8 million shares (or $178.5 million) without notifying share subscribers as the result of market demand, regulatory considerations or changes in financial market conditions (News Now Oct. 19).


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